DOCSLIB.ORG

The Canadian Movement for Monetary Sovereignty

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Canadian Movement for Monetary Sovereignty THE JOURNAL OF THE COMMITTEE ON MONETARY AND ECONOMIC REFORM $3.95 Vol. 25, No. 6 • JUNE 2013 CONTENTS CHAPTER 17 OF A NEW BOOK BY ELLEN H. BROWN, 5 From Austerity to Prosperity THE PUBLIC BANK SOLUTION Through Proper Use of Our Publicly Owned Bank of Canada 6 Germany Fears Revolution If The Canadian Movement Europe Scraps Welfare Model 7 The Acropolis: Part II for Monetary Sovereignty: 9 On Hong Kong Shelves, Illicit Dirt on China’s Elite Rise and Fall 10 Hello, COMER “Once a nation parts with the control By the eve of the depression, interest on 13 Will Omnibus Bill Influence Bank of its currency and credit, it matters not Canada’s public debt had reached an alarm- of Canada’s Independence? who makes the nation’s laws. Usury, once ing one-third of government expenditures; Flaherty Should Explain. in control, will wreck any nation.” – Wil- and many officials believed that the govern- 14 Fantopian Update liam Lyon Mackenzie King, Prime Minister of ment needed a central bank to generate its 17 Letters from COMER Readers Canada, 1935 own money. In 1933, a Royal Commission 18 Certain Television Fare Can Help The government of Canada devised its in- was put together to look into creating such Ease Aggression in Young Children, Study Finds novative system of state-bank-created credit in a bank. A major debate then ensued over the 1930s, and drew freely from it for nearly whether it should be public or private. 19 The Illusion of Growth four decades of unusual prosperity, growth and William Lyon Mackenzie King, elected Publications Mail Agreement No. 41796016 development. Then in the 1970s, Canada prime minister in 1935, thought the bank joined the Basel Committee of G10 countries should be public. He admonished: at the BIS. A change in economic policy fol- “Until the control of the issue of cur- lowed that cut the government off from its rency and credit is restored to government own state bank funding, subjecting it instead and recognized as its most conspicuous and to the skyrocketing interest rates of private sacred responsibility, all talk of the sover- international credit markets. Canada is now eignty of Parliament and of democracy is struggling with debt and deficits along with idle and futile.”2 most of the rest of the Western world. How different times were then. Imagine While Australia’s innovative central bank a Canadian prime minister or US president was being reined in by the City of London saying that today! in the 1930s, Canada’s was just getting started. Before 1935, the Canadian govern- Continued on page 2 ment did not have a central bank. It had to borrow from private banks that issued their own banknotes, with the country’s largest COMER Email Update private bank, the Bank of Montreal, serv- ing as the government’s de facto banker.1 COMER is updating its confidential email But in the throes of the Great Depression, contact list to better inform members and this private system had failed. The money Economic Reform subscribers of relevant, supply had collapsed, forcing businesses to late-breaking news and local events. close and unemployment to soar. The banks Interested parties are encouraged to send were blamed for making conditions worse a message immediately to ”COMER by failing to extend loans; while for the gov- Email Update” [email protected] from ernment, a national debt to private banks their preferred email account. As ever, meant a mounting interest burden. all preferences will be respected. Sovereignty from page 1 It was all going well, says Bolton, until Gerald McGeer and the Model two local banks flooded Guernsey with their of Guernsey own notes to undermine the State Notes. Another zealous advocate for a public The Island responded by agreeing to limit central bank was a Canadian mayor and the issue of its own Notes. But with the out- FOUNDING EDITOR Member of Parliament named Gerald Grat- break of war in 1914, the State Notes were John Hotson 1930–1996 ton McGeer. In The Conquest of Poverty restarted; and they continued to circulate (1936), McGeer wrote: alongside British Pounds Sterling thereafter. PUBLISHER–EDITOR “Ever since the passage of the English Despite that influx of new money, writes William Krehm Bank Act of 1844, the creation, issuance, Bolton, “there has never been inflation, ([email protected]) and the regulation of the circulation of the and the prosperity of the island continues INFORMATION SECRETARY current medium of exchange, though being as it has since 1820, operating on minimal Herb Wiseman duties that constitute the most conspicuous taxation.” ([email protected]) and sacred responsibilities of government, What a Nationalized Central Bank Economic Reform (ER) have been in large measure delegated in (ISSN 1187–080X) is published monthly blind faith and absolute confidence to bank- Can Do by COMER Publications ers and financiers. The Bank of Canada opened in 1935 27 Sherbourne Street North, Suite 1 “The complete collapse of the econom- under private ownership; but in 1938, the Toronto, Ontario M4W 2T3 Canada ic structure under banker management… Bank Act was amended to make it a public- Tel: 416 ‑924‑3964, Fax: 416‑466‑5827 proves that the private control of credit is ly-owned institution. According to William Email: [email protected] fundamentally unsound…. Krehm in A Power Unto Itself: The Bank of Website: www.comer.org “Necessity now compels all to recog- Canada, the 1938 nationalization allowed nize that the creation and issuance of the the central bank to create the money to COMER Membership: Annual dues medium of exchange, the monetization of finance federal projects on a nearly interest- (includes ER on request plus 1 book of your choice): CDN$50 public credit, the circulation of the medium free basis. The bank could also lend to the of exchange, and the general supervision of provinces. The interest it collected went Economic Reform Subscription only: the monetary system must be restored to back to the federal treasury.4 One year, 12 monthly issues, in Canada government.” In creating the credit to finance fed- CDN$30, Foreign CDN$40 McGeer made lengthy presentations to eral, provincial, and municipal projects, the the Ottawa Common Banking Committee, Bank of Canada was doing what private Send request and payment to: clarifying for bankers, economists and leg- banks do every day; but it was doing this COMER Publications 27 Sherbourne Street North, Suite 1 islators how well a national currency issued in the public interest. In parliamentary Toronto, ON M4W 2T3 by a publicly-owned bank could work. For hearings in 1939, Graham Towers, the first a model, he cited the British Channel Island governor of the Bank of Canada, confirmed ER Back Issues: CDN/US$4, includes state of Guernsey, which had been issuing that banks routinely create credit with ac- postage; additional copies same its own currency to pay for public works counting entries. When asked by Gerald issue, $2; additional issue same order, since 1820. McGeer whether banks create the medium $3. Send requests for back issues to New Zealand researcher Kerry Bolton of exchange, Towers replied: Herb Wiseman, 69 Village Crescent, Peterborough ON K9J 0A9. summarized the Guernsey experience in an “That is right. That is what they are there August 2011 article like this: for…. That is the banking business, just in Copyright © 2013 “Guernsey’s banking system was prompt- the way that a steel plant makes steel. The COMER Publications ed by dire need, the island being in serious manufacturing process consists of making a All rights reserved financial trouble from the beginning of the pen-and-ink or typewriter entry on a card in 19th Century. Guernsey’s town was un- a book. That is all.”5 Permission to reproduce is granted developed, the roads were cart-tracks, and In another interesting exchange, McGeer if accompanied by: “Copyright © 2013 COMER Publications. there was no prospect for employment…. asked Towers: Reproduced by permission of “[I]t was the need to upgrade the Public “Q: Would you admit that anything COMER Publications” Market that prompted a committee to re- physically possible and desirable can be port back with a solution in 1816 to issue made financially possible? Postmaster, please send address £6000 worth of States Notes. The commit- “A: Certainly. corrections to: tee also recommended that the States Notes “Q: Will you tell me why the govern- COMER Publications be used not only for the new market, but ment with power to create money should 27 Sherbourne Street North, Suite 1 also for Torteval Church, road construction, give that power away to a private monopoly Toronto, Ontario M4W 2T3 and other State expenses. The notes’ issue and then borrow that which Parliament can PRINTING AND DISTRIBUTION was started in 1820, and was followed by create itself, back at interest? Watt Solutions Inc., London other issues, until by 1837 £55,000 of the “A: Now, if Parliament wants to change Notes were in circulation, debt-free and the form of operating the bank system, then Printed in Canada on recycled paper. having created prosperity and development, certainly that is within the power of Parlia- which in turn stimulated visitors to the ment.”6 island.”3 For over three decades, the Bank of Can- 2 | Economic Reform June 2013 www.comer.org ada used its lucrative credit-creating tools cian services. In 1984, the Canada Health Friedman, the phenomenon was blamed for the benefit of the public. The Cana- Act ensured that no medically-necessary on governments either issuing money too dian government funded infrastructure and care would include private fees or a charge freely or borrowing too freely from their social programs simply by advancing the to citizens.9 own central banks.
Load more

Recommended publications
  • Annual Report 2003 La De Annuel Rapport Rapport Annueldela 2003 Banque Ducanada
    BANK OF CANADA OF CANADA BANK ANNUAL REPORT 2003 ANNUAL REPORT BANK OF CANADA ANNUAL REPORT 2003 2003 2003 BANQUE DU CANADA DU CANADA BANQUE BANQUE DU CANADA DU BANQUE LA DE ANNUEL RAPPORT RAPPORT ANNUEL DE LA RAPPORT Bank of Canada — 234 Wellington Street, Ottawa, Ontario K1A 0G9 5211 — CN ISSN 0067-3587 ISSN CN — 5211 0G9 K1A Ontario Ottawa, Street, Wellington 234 — Canada of Bank his many volunteer activities. His warm wit and generous spirit will be sorely missed. sorely be will spirit generous and wit warm His activities. volunteer many his Gerry Bouey and neither will his community to which he contributed to the very end through end very the to contributed he which to community his will neither and Bouey Gerry Those who worked with him over the course of his long and remarkable career will never forget never will career remarkable and long his of course the over him with worked who Those Achievement Award. In 1987, he was made a Companion of the Order of Canada. of Order the of Companion a made was he 1987, In Award. Achievement of Laws from Queen’s University. In 1983, he was presented with the Outstanding Public Service Public Outstanding the with presented was he 1983, In University. Queen’s from Laws of In 1981, he was made an Officer of the Order of Canada and also received an Honorary Doctor Honorary an received also and Canada of Order the of Officer an made was he 1981, In economic development and to the Bank’s growing international reputation.
    [Show full text]
  • Tiff Macklem: Mitigating Systemic Risk and the Role of Central Banks
    Tiff Macklem: Mitigating systemic risk and the role of central banks Remarks by Mr Tiff Macklem, Senior Deputy Governor of the Bank of Canada, to “Conférence de Montréal”, Montreal, Quebec, 6 June 2011. * * * Introduction It’s a pleasure to be here today and to be part of this panel. My assignment is to talk about the role of central banks with respect to systemic risk–in ten minutes. Needless to say, this is a tall order, made all the more challenging by the fact that systemic risk requires looking across the entire financial system and considering the full sweep of policy instruments and how they interact. But I will do my best to break it down into the essential points and look forward to the panel discussion and questions afterwards. There are three points that I want to make. First, we have made considerable progress in reforming the core of the global financial system. Basel III represents a very significant strengthening of the global rules. The reform agenda is now turning to the important issue of shadow banking–or market-based financing, as it is more aptly called–and the appropriate perimeter of supervision and regulation. Completing this reform agenda is critical to strengthening the resilience of the financial system. Second, central banks have a pivotal role to play in mitigating systemic risk by: identifying system-wide vulnerabilities and using their panoramic view of the financial system to connect the dots; supporting financial stability by providing emergency liquidity assistance to solvent, but illiquid institutions; and protecting the global financial system from the failure of one institution by promoting robust core financial infrastructure and overseeing systemically important clearing and settlement systems, including central counterparties for over-the-counter (OTC) derivatives.
    [Show full text]
  • Bank of Canada Review: July 2020
    Bank of Canada Review: July 2020 Relevant Links : Policy Announcement: https://www.bankofcanada.ca/2020/07/fad-press-release-2020-07-15/ Monetary Policy Report: https://www.bankofcanada.ca/2020/07/mpr-2020-07-15/ Policy Press Conference: with Tiff Macklem and Senior Deputy Governor Wilkins: https://www.bankofcanada.ca/2020/07/opening-statement-150720/ BOC rates seen being on hold into 2023 after Gov Macklem says it will remain 0.25% until inflation is sustainably around 2% target. - Macklem also said that QE may be tapered off before rates rise, in line with earlier plan to buy at least CAD5b/wk of federal bonds until recovery is well underway.- "We will be looking for signs that the recovery is becoming more self-sustaining," Macklem said at press conference. "Logically yes, the recovery being well under way comes before capacity has been fully absorbed, but those of those are some ways off." - "We continue to think asset purchases will continue at least through the first quarter of 2021, and likely well into next year," RBC senior economist Josh Nye says in note. No rate rise until 2023 or later. - Capital Economics: "Bank signals it will not raise rates until at least 2023." - "The timing of the first BoC hike could be similar to that for the Fed, in early 2023," CIBC chief economist Avery Shenfeld said. "the phrase "well underway" also suggests that QE will end before the policy rate is hiked. Analyst Views Bank of America: "Low rates for a long, long time." BoA expects the "policy rate to remain at current levels for many quarters and see QE stepped up if needed.
    [Show full text]
  • November 26 – November 30, 2012
    Market Round Up: November 26 – November 30, 2012 International News: Expecting good news from China, where confidence in the economy is the highest it has been in more than a year. Unfortunately, domestic investors do not seem to agree, as the Composite Shanghai index lost 4.3 per cent last month. Over the last three years, it has fallen 43 per cent. Company News: RIM was back in the news last week. Shares have rallied 90 per cent in the last two months, and are now at $12, a result of the BB10 launch set for January. It seams carriers are hoping to impact the Android/Apple duopoly, and putting some weight behind RIM’s offering. Analysts are even beginning to speak on “non-terrible” results in Q1 of 2013 - Goldman even updated the company to a “buy” rating. Whether this rally is based on something tangible or merely hope, has yet to be determined. Tiffany and Co (TIF) fell following the release of lower-than-expected quarterly sales, while Yum Brands (YUM) reported weak Chinese sales numbers, sending shares lower. Upcoming: We continue to look towards retailers to indicated economic health. Note that, pessimistically, most US department stores revealed falling sales in November despite a post thanksgiving boost. Technical analysts are looking for a rally in December, based on the September sell off. As per usual, watch for movement in the fiscal cliff talks. Mark Carney, governor of the Bank of Canada will take up the same position in the Bank of England. His job will include anchoring inflation, supervising the financial institutions (company regulators will come under the BoE mandate next year), and stabilizing the British economy.
    [Show full text]
  • Tiff Macklem: the Role of the G-20 in Sustaining the Recovery and Protecting Financial Stability
    Tiff Macklem: The role of the G-20 in sustaining the recovery and protecting financial stability Remarks by Mr Tiff Macklem, Senior Deputy Governor of the Bank of Canada, at the FICCI-IBA (Federation of Indian Chambers of Commerce & Industry – Indian Banks’ Association) Conference on “Global Banking: Paradigm Shift”, Mumbai, 24 August 2011. * * * Introduction In some respects, Canada and India could not be more different. Canada is the world’s second-largest country in geographic size, with a population of 34 million. India, as one of only two countries with more than a billion people, is the world’s second largest in population and is expected to be the largest within 15 years. However, there is much we share, not least, vast and diverse geographies, diversity among our citizens, a common democratic heritage as members of the British Commonwealth, and market-based economies. In my remarks today, I will focus on these and other similarities between India and Canada, as well as our strong, joint interest – indeed, our leadership role – in the G-20 reform program to achieve durable financial stability and sustainable and balanced economic growth. My message, in a sentence, is that while the G-20 has made considerable progress in strengthening the microeconomic rules governing the regulated financial system, we have fallen short in correcting the imbalances that are plaguing the global economy and fuelling financial vulnerabilities. And this is having consequences. The slow progress by some countries in implementing adjustments needed to address macroeconomic imbalances is holding back the global recovery and increasing the risk of financial instability.
    [Show full text]
  • Annual Report 2020
    Governor's foreword The year 2020 was like no other. It began with the unemployment rate in Canada near an all-time low, inflation very close to its 2 percent target and the Bank of Canada’s policy interest rate at 1¾ percent. Canada’s economy was healthy. To use Governor Stephen Poloz’s words in the foreword of last year’s Annual Report, “the macroeconomy has made it home.” A year later, we are far from home. By February 2020, COVID‑19 was spreading globally, and in March, Canada went into a lockdown. Thanks to the collective efforts of so many—health care providers, first responders, essential workers, governments, business leaders and every Canadian who took public health guidance to heart—a much worse catastrophe was averted. Nevertheless, the human and economic costs of the pandemic have been severe, and it’s not over. The COVID‑19 pandemic took the lives of more than 15,000 Canadians in 2020. And with the virus continuing to spread, more Canadians will get sick—some with devastating consequences. In the spring of 2020, the economy plunged into the deepest recession on record—putting more than three million Canadians out of work —and inflation fell to zero. Since then, the economy has climbed a long way back from the very deep hole it was in. But the recovery remains very incomplete. At the end of 2020, rising infections and new lockdowns were poised to worsen the economic situation in early 2021, before the rollout of new vaccines allows for a gradual return to more normal activities sometime later in the year.
    [Show full text]
  • Comm 285COVER.Qxp
    NO. 285, MARCH 2009 C.D. Howe Institute COMMENTARY MONETARY POLICY To the Next Level: From Gold Standard to Inflation Targets – to Price Stability? William B.P. Robson In this issue... Can Canada improve on its successful monetary order based on a 2 percent inflation target when it expires in 2011? Yes – better price measures, a lower inflation or price-level target, and stronger accountability could better preserve the value of Canadians’ money. THE STUDY IN BRIEF Canada’s current monetary regime, with its 2 percent inflation target, has a record of success that sets the bar high for improvements in 2011 when it comes up for renewal. Yet the 2 percent target has key defects: the impact of 2 percent annual inflation on Canadians’ purchasing power will, by 2011, have reduced the dollar’s value by more than one-quarter since 2 percent targeting began in 1995, and the annual target means the future price level is less predictable as the forecast horizon THE AUTHOR OF lengthens. Moreover, the 2 percent regime’s success also suggests that protecting THIS ISSUE money’s purchasing power more vigorously would be easier and more rewarding than once thought. WILLIAM B.P. ROBSON is President and Chief Before assessing whether and how the current regime can be improved, this Executive Officer of the Commentary first examines the key elements of a durable monetary order. They are: C.D. Howe Institute. a unique, logical goal for monetary policy; technical power to influence monetary conditions decisively; tactical skill to use that power effectively; private expectations and behaviour that conform to the goal; democratic support and accountability; and Rigorous external review resilience in the face of foreseeable shocks.
    [Show full text]
  • Getting COVID's Number
    CELINA CAESAR-CHAVANNES TIFF MACKLEM 5 TO WATCH Hear her now, steers the Bank of Canada Meet our new Canada in her own words through the pandemic Research Chairs QUEEN’S ALUMNI REVIEW THE MAGAZINE OF QUEEN’S UNIVERSITY SINCE 1927 Getting COVID’S number How Dr. Troy Day is using math to chart the course of the virus SPRING 2021 CONTENTS Spring 2021 Tiff Macklem (Artsci'83) in the front entrance hall of the Bank of Canada Features S ALUMNI REVIEW BY JENNIFER ROBERTS; (RIGHT) RÉMI THÉRIAULT; SPOT ILLUSTRATION SOL COTTI ILLUSTRATION SPOT (RIGHT) RÉMI THÉRIAULT; JENNIFER ROBERTS; REVIEW BY S ALUMNI ’ 20 24 30 A global pandemic Five women whose The Bank of Canada’s — by the numbers research leads the way Queen’s tradition How an applied mathematician Find out what they’re studying Why have so many governors is helping forecast where and how they are changing of the Bank of Canada been the COVID-19 virus will go next. the world around us. Queen’s grads? Ask Tiff Macklem. COVER SHOT EXCLUSIVELY FOR QUEEN FOR EXCLUSIVELY SHOT COVER BY TOM SPEARS BY TY BURKE BY MICHAEL ONESI QUEENSU.CA/ALUMNIREVIEW 1 CONTENTS On Campus Off Campus 07 Campus News A compendium of the latest “I found Queen’s news – and the people it can be very and things that are making it fulfilling to look outside yourself The Big Picture How do you build a and consider ventilator for the world? the people Keep it simple 12 around you and how you can affect ABOUT THE COVER their lives Dr.
    [Show full text]
  • President William C. Dudley Daily Schedules January 2009
    President William C. Dudley Daily Schedules January 2009 – September 2010 William Dudley January 29, 2009 Calendar Thursday, January 29, 2009 06:15 AM Bank car pick up from home 07:30 AM - 07:45 AM Daily meeting with Bill and Mike 08:45 AM - 09:00 AM Morning Briefing - you are to lead today's meeting 09:00 AM - 09:30 AM Martin Feldstein, NBER 09:15 AM - 09:45 AM Morning Calls / Dial-in 09:30 AM - 10:00 AM Hold for Markets Group, 9th floor 10:00 AM - 10:30 AM Special Management Conference, 12FCC 10:30 AM - 10:45 AM Ed/Bill D. 11:00 AM - 11:30 AM Planning for the next FOMC cycle (with Simon Potter) 11:30 AM - 12:30 PM Lunch with Tudor Investments Corp., Lincoln Room 01:30 PM - 02:30 PM Discussion re: Morgan Stanley with Rutledge 03:00 PM - 04:00 PM Discussion re: Citigroup 04:00 PM - 04:30 PM Market Conditions Briefing 04:30 PM - 05:00 PM Directors' Telephone Conference call (Chris will be in Phila.) 05:00 PM - 05:30 PM Meet with Brian Peters Mr. Dudley's departure from the Bank on January 30 is to be determined. William Dudley January 30, 2009 Calendar Friday, January 30, 2009 06:15 AM Bank car pick up from home 07:30 AM - 07:45 AM Daily meeting with Bill and Mike Schetzel 08:45 AM - 09:00 AM Morning Briefing - You are to lead today's meeting. 09:15 AM - 09:45 AM Morning Calls / Dial-in 10:00 AM - 11:00 AM Meeting with Derryck Maughan, Managing Director, Kohlberg Kravis Roberts & Co (Marianne 02:30 PM - 03:00 PM AIG Update Meeting with Mr.
    [Show full text]
  • Management Proxy Circular
    ANNUAL MEETING OF SHAREHOLDERS April 13, 2021 MANAGEMENT PROXY CIRCULAR YOUR VOTE IS IMPORTANT Please take some time to read this management proxy circular for important information about the business of the meeting and to learn more about Scotiabank. scotiabank.com/annualmeeting Scotiabank is a leading bank in the Americas. Guided by our purpose – “for every future” –wehelpour customers, their families and their communities achieve success through a broad range of advice, products and services. YOUR VOTE IS Notice of annual meeting of IMPORTANT common shareholders of The Bank As a Scotiabank shareholder, it is important of Nova Scotia to vote your shares at the upcoming meeting. WHEN WHERE Detailed voting instructions Tuesday, April 13, 2021 Via Live Webcast Online at for registered and 9:00 a.m. (Eastern) https://web.lumiagm.com/422842781 non-registered Given the continued uncertainty surrounding the COVID-19 pandemic and the shareholders begin on importance of the health and safety of our employees, shareholders, communities page 8 of the management and other stakeholders, we have taken the proactive step to obtain a court order that proxy circular. allows us to hold our annual meeting using electronic means. We believe this order If you cannot attend the provides a level of certainty for our stakeholders while supporting shareholder meeting, you should engagement and their ability to attend the annual meeting and exercise their rights to complete, sign and return participate and vote. The annual meeting will be held virtually via live webcast at your proxy or voting https://web.lumiagm.com/422842781. We encourage you to vote your shares prior to instruction form to vote the meeting.
    [Show full text]
  • Trusted Intelligence in Turbulent Times
    Trusted Intelligence in Turbulent Times ANNUAL REPORT 2019 Institut C.D. HOWE C.D. HOWE Institute Our Mission The C.D. Howe Institute is a registered charity, and an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review. Your Philanthropic Dollars at Work in 2019 #1 Awarded Think Tank The C.D. Howe Institute has won more research awards than any Canadian think tank, and has six times been awarded the Canadian Economics Association’s Purvis Prize, the highest honour in Canadian economic policy writing. Essential Output 80 52 22 Exclusive, off-the-record High-quality research and Policy council meetings events policy council reports Stimulating Debate 6000+ 14,000+ 600,000+ Citations in Canadian citations in social media Website page views and international media Most cited think tank in the Globe and Mail and National Post, Canada’s two national dailies. Engaging Government 55 Policy outreach presentations Board of Directors in 2019 Chair Rick Ekstein Ronald P. Mathison, CA, CBV, CFA President and Chief Executive Chairman, Matco Investments Hugh L. MacKinnon Officer, Phaze 3 Management Ltd. Chairman and Chief Executive Inc. Marcia Moffat Officer, Bennett Jones LLP Sheldon Elman, M.D. Managing Director – Head of Co-Founding Partner, Canada, BlackRock Vice-Chair Persistence Capital Partners Gilles G. Ouellette Heather Evans Chairman of the Board, BMO Brian M.
    [Show full text]
  • Greening the Financial System Practical Insights on Developing a Climate Risk Management Strategy
    HNW_NRG_C_Bleed_Transp Greening the Financial System Practical Insights on Developing a Climate Risk Management Strategy AUGUST 2020 Contents 03 | Executive Summary 04 | Government and Regulator Action 09 | The Canadian Context 09 | Market Conduct Issues 10 | Recommendation 1: Assess 14 | Recommendation 2: Disclose 16 | Recommendation 3: Adapt 17 | Conclusion 19 | Appendix A – Recommendations in EPSF Final Report 20 | Appendix B – Examples of Climate Risk Mitigating Measures 21 | Appendix C – Sustainability Accounting Standards Board 22 | Appendix D – RBC’s Climate Blueprint, 2019 TCFD Disclosures and 2019 ESG Report 23 | Appendix E – Additional Resources EXECUTIVE SUMMARY Climate change and extreme weather-related news stories The growing market for sustainable finance and Environmental, dominated the end of the last decade. We can also anticipate Social and Governance (ESG)3 financial products has also that climate change will be a dominant theme in the coming drawn the attention of market conduct regulators, including decades that will influence public policy to support technologies, provincial securities commissions. These regulators established practices, and companies that are less carbon intensive. While the Sustainable Finance Network (SFN) in 2018 and their efforts the impact of the COVID-19 pandemic continues to be felt have focused on investor protection and market fairness globally, climate change issues remain on the agenda issues that have emerged in the rapid expansion of sustainable of governments. finance markets.4 Due to a lack of standards and reliable data in early ESG markets, one of the key issues that has emerged The undeniable interconnectedness of environmental and social is “greenwashing” – practices or disclosures that give a false issues in society today has spurred calls for a just transition that impression about how well a product, firm or activity is aligned ensures environmental sustainability, as well as dignified work, with ESG objectives.5 The SFN estimated that investment products social inclusion and poverty eradication.
    [Show full text]